Student Loan Department

Loan Servicer

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Creighton University has partnered with Heartland ECSI for servicing the Creighton University Undergraduate, Federal Perkins, Health Professional, Federal Nursing, and Primary Care Loans.

ECSI is responsible for sending your billing statements and loan payment coupons, processing loan repayments, and processing deferments, cancellations, and forbearances.

ECSI offers the following online services to help you manage your account:

Student Loan Exit Interview

Whenever a student is no longer enrolled as at least a half time student Creighton University is required by the federal government to conduct an exit interview for each of your loans. The exit interview is a loan counseling session where you are advised of your loan repayment schedule, obligations, and rights to deferment and/or cancellation.

A Student Loan Exit Hold is placed on each student account until the Student Loan Exit Interview has been completed. If you need to be sent your Exit Interview again, please contact us. This hold will prevent students from registering for future courses, ordering transcripts, and receiving a diploma.

Student Loan Resources

Student Loan Survival Guide

No one wants to go into debt. However, for many, student loans are a necessary part of reaching educational goals.

According to estimates from the White House, more than 800,000 Washingtonians have federal student loan debt, and that number is higher still if private loans are included. Each of these individuals has their own story about the impact that these loans has had on their life, but for far too many, student loans are an enormous burden.

In a 2016 Consumer Reports survey of people with student loan debt, almost half said that - if they had it to do over again - they would accept less financial aid to pay for their school. They would cut costs, find other ways to pay for their education, or go to a less expensive school.

More than half the people in the Consumer Reports survey said they had problems making payments on student loans at least once. Navigating these challenges can be difficult. At the same time, there seems to be no shortage of people trying to take advantage of student loan borrowers.

To assist student loan borrowers in Washington, the Attorney General's Office has compiled a Student Loan Survival Guide. This guide provides information about student loans for students and their families. It provides tips and links to resources for all points in the process to help high school students thinking about attending college, former college students who aren’t able to keep up with their payments, and everyone in between.

Protections for Student Loan Borrowers in the Wake of COVID-19

In response to the economic difficulty faced by so many in light of the COVID-19 crisis, the federal government has taken action to provide some relief for federal student loan borrowers. Most of these changes are codified in the federal “Coronavirus Aid, Relief, and Economic Security Act,” or the “CARES Act,” which the President signed into law on March 27, 2020, and an Executive Order directing the Department of Education to extend relief until December 31, 2020. The changes apply to student loans held by the Department of Education and include:

Eligible federal student loans will be automatically placed in administrative forbearance from March 13, 2020 through December 31, 2020. During this period, monthly payments, including auto-debit payments, will be suspended, however there may be some delay in servicers implementing the suspension.

Each month of suspended payments will count toward loan forgiveness progress, assuming other conditions are met (such as having a qualifying loan, and working full-time for a qualifying employer if applying for Public Service Loan Forgiveness).

Borrowers who made a payment toward CARES-Act-eligible federal loans after March 13, 2020 can receive a refund. Contact your loan servicer for more information about refunds.

From March 13, 2020 through December 31, 2020, the interest rate for qualifying federal loans is temporarily set at 0%. If your loan payment is suspended under the CARES Act, but you choose to continue making payments between now and December 31, 2020 2020, the full amount of such payments will be applied to the interest that accrued before March 13, 2020, and then to the principal of your loan.

None of these benefits apply to private education loans, or other loans not held by the Department of Education. Borrowers must continue to make payments on such loans, unless they make alternative arrangements with their loan servicer. If you are unsure whether the Department of Education holds your student loans, contact your student loan servicer.

More information about available relief, including relief provided in the CARES Act, is available at studentaid.gov/coronavirus. If you are unsure whether you have federal student loans, visit studentaid.gov.

If you have additional questions or need more assistance, you can contact Washington’s Student Loan Advocate, Stephanie Sampedro, at , or file a complaint with the AGO Consumer Protection Division at .

Student Loan Report

As part of Attorney General Ferguson’s ongoing efforts to protect student loan borrowers, in December 2017, his office released this student loan report to help policymakers and the public better understand the challenges faced by Washington borrowers.

The number of student loan borrowers in Washington state likely exceeds 800,000, an increase of more than 35 percent compared to a decade ago. Collectively, these borrowers owed $24.4 billion in student loan debt at the end of 2016.

The Attorney General’s report illustrates current trends, difficulties and vulnerabilities for Washington student loan borrowers and residents. Among other important findings, the report identifies racial, gender and age disparities among student loan borrowers, the loans’ impacts on borrowers and the reasons these borrowers face so many obstacles to repayment.

The Attorney General’s Office has received hundreds of complaints from student loan borrowers. Several of these complaints are highlighted in the report.

News

For student loan related news releases, please click here.

Legislation

Student Loan Transparency Act - Passed

(Read the full PDF one pager)

Provide students with regular statements reflecting the outstanding balance of their student loans and estimated monthly payments upon graduation. The purpose is to increase awareness of the long-term impact of student loans and reduce avoidable borrowing.

PROBLEM

For many students, loans are necessary to reach their educational goals. Students often lack basic information about their student loans, including the amount of the loans and what their monthly payments are likely to be. According to the Brown Center on Education Policy at Brookings, “…about half of all first-year students in the U.S. seriously underestimate how much student debt they have, and less than one-third provide an accurate estimate within a reasonable margin of error.”

The majority of Washingtonians graduate from colleges and universities with debt—$24,000 on average. The average student loan balance rises with each new graduating class. This is a significant financial burden to carry when beginning a new career.

BACKGROUND

During the 2012-13 academic year Indiana University sent an annual loan statement to students. Combined with other financial literacy initiatives, undergraduate borrowing reduced by almost 16 percent over two years. Building on this success, the Indiana Legislature passed a bill requiring that all postsecondary institutions accessing state financial aid provide the following to each student annually

An estimate of the students’ total education loans;

An estimate of the total amount owed including interest;

An estimate of the students’ expected monthly payment, including principal and interest; and

The percentage of the federal borrowing limit the student has reached.

Recently, Wisconsin and Nebraska have followed Indiana’s lead and passed similar legislation.

LEGISLATION (SB 5022 / HB 1057)

Makes it easier for students to understand the long-term implications of their borrowing decisions. It requires colleges and other institutions of higher education to provide notices to students detailing their loan balances and estimated monthly payments at least annually and within 30 days of the disbursement of a loan.

Student Loan Bill of Rights - Passed

(Read the full PDF one pager)

Protect student loan borrowers by creating a dedicated ombuds and adopting standards for loan servicers.

PROBLEM

In the past few years, the Washington State Attorney General’s has received more than 325 complaints from Washington consumers about student loan servicers. Complaints include a failure to provide information about free resources, a failure to notify the consumer when a loan is transferred to a different servicer, a failure to respond to requests for information, and misapplication or nonapplication of payments.

BACKGROUND

More than half of students who graduated from Washington’s colleges and universities in 2014 left with student loan debt. The average debt is more than $24,000. Borrowers frequently struggle to repay their debt and navigate the repayment process.

LEGISLATION (SB 6029)

In 2015, the Connecticut Legislature unanimously passed a Student Loan Bill of Rights. California and the District of Columbia have since followed.

HB 1440 creates standards that serve as a baseline for servicer compliance in working with student borrowers, providing student borrowers with important guarantees. These guarantees include:

The guarantee that requests for information will be responded to promptly, in writing, and a record of that communication will be kept; The guarantee that payments will be credited within one business day; The guarantee that the borrowers will be provided notice when a loan is transferred between servicers; The guarantee that fees assessed to the borrower from servicer error will be refunded.

SB 6029 assists student loan borrowers by establishing a student loan ombuds to receive and resolve complaints, compile and analyze data, and provide outreach and education.

Student Loan Debt 2022 Facts & Statistics

Based on the data available to Nitro, the total amount of student loan debt is over $1.75 trillion. This debt is not only created by recent graduates and current students; It also includes student loan borrowers who have been out of school for over a decade.

The standard repayment plan for both private and federal student loans 10 years, but research suggests it actually takes four-year degree holders an average of 19.7 years to pay off their loans.

In addition to the total student loan debt in the United States, here are some other useful student loan statistics:

Current U.S. Student Loan Debt = est. $1.75 Trillion

1 in 4 Americans have student loan debt: An est. 44.7 Million people

have student loan debt: An est. Average student loan debt amount = $37,172

Average student loan payment = $393/month

The Different Types of Student Loans Available

When you start applying for student loans, you start to learn that there are a lot of different types of loans on the market. It can be difficult to determine exactly which type of loan is right for you. Generally, the different types of loans will fall into two categories: Federal Student Loans and Private Student Loans.

But, what is the difference between these different loan types?

Federal Student Loans

Federal student loans are provided directly by the federal government and the U.S. Department of Education. You can apply for federal loans by filling out the FAFSA (Free Application for Federal Student Aid). After applying for federal student aid, you may be approved for one or more of the following federal loan types:

Parent PLUS Loans

Subsidized or unsubsidized direct loans

Subsidized or unsubsidized indirect loans

Perkins loans

FFEL loans

Each loan type has a few different qualifications and works a little differently when it comes to interest rates, monthly payments and forbearance. Additionally, all federal loans have a 6-month grace period before your repayment plan begins. This means that you have 6 months after you graduate or drop below half time enrollment before you have to start paying back your education loans.

Private Student Loans

Private student loans are provided from individual private lenders and can be secured at varying interest rates. While federal student loan interest rates are decided by the U.S. Department of Education, your private loans are decided by the lender themselves. If you have a high credit score or a cosigner with a high credit score, you may be able to secure fairly low rates on your loans.

However, private student loans do not qualify for any of the federal student loan forgiveness programs. They also start accruing interest immediately after you take them out, unlike federal student loans. Generally, we recommend securing federal funding before exploring private student loans.

The Average Monthly Student Loan Payment ​ ​​ ​​​

The average monthly student loan payment was $393 in 2016 (the latest data available), which is like buying the newest Apple Watch every two months. That puts the average monthly payment nearly 55% higher than it was a decade ago.

Student loan payments have increased more than two-and-a-half times faster than the rate of inflation. If the typical $227 monthly bill student loan borrowers received in 2005 had kept pace with consumer prices, the cost would only have risen by 22.9% to $279. Paying off student loans is significantly more challenging today than it was in the past, but there are strategies borrowers can use to cut their interest rates and lower their monthly payments.

Alternative Student Loan Repayment Options

When most Americans start their student loan repayment plan, they do not understand the majority of alternative payment options available to them. The most common alternative repayment options include:

Deferment : This is offered by all federal student loan lenders and some private lenders. Deferment gives you a longer grace period between payments that can last up to three years. You won't be able to make any qualifying payments on your loan balance during your deferment period. Additionally, your federally subsidized loans will not accrue interest throughout the deferment period.

: This is offered by all federal student loan lenders and some private lenders. Deferment gives you a longer grace period between payments that can last up to three years. You won't be able to make any qualifying payments on your loan balance during your deferment period. Additionally, your federally subsidized loans will not accrue interest throughout the deferment period. Forbearance : This is also offered by federal student loan lenders and some private lenders. The forbearance period usually lasts a minimum of 12 months and has no maximum time limit. During this time, you will have the option to make small payments towards the interest of your loans, but no other payments. Additionally, all loan types will accrue interest throughout the forbearance period.

: This is also offered by federal student loan lenders and some private lenders. The forbearance period usually lasts a minimum of 12 months and has no maximum time limit. During this time, you will have the option to make small payments towards the interest of your loans, but no other payments. Additionally, all loan types will accrue interest throughout the forbearance period. Forgiveness : Student loan forgiveness is the ideal alternative repayment route for most students, though federal student loan forgiveness has strict eligibility requirements. If you qualify for any federal loan forgiveness programs, it will cancel some of your outstanding student loan balance. The most common program that people qualify for is the Public Service Loan Forgiveness Program (PSLF). If you work in the healthcare field, for the government or for a nonprofit, you can have a portion of your federal student loans forgiven through that program.

: Student loan forgiveness is the ideal alternative repayment route for most students, though federal student loan forgiveness has strict eligibility requirements. If you qualify for any federal loan forgiveness programs, it will cancel some of your outstanding student loan balance. The most common program that people qualify for is the Public Service Loan Forgiveness Program (PSLF). If you work in the healthcare field, for the government or for a nonprofit, you can have a portion of your federal student loans forgiven through that program. Refinance: You can refinance either private or federal student loans, as long as they are consolidated into one payment. The refinancing process allows you to find a new lender to apply a lower interest rate and set a new loan term. This can help save you money over time on both your federal and private loans, especially if you have a good credit score.

Federal Student Loan Repayment Statistics

About $1.05 trillion of Americans’ student loan debt is in the form of direct loans. That’s a steep increase from five years ago when the total was $508.7 billion. Currently, 52% of direct federal loan debt is in repayment. About 8% is in default because the borrower hasn’t made a payment in nine months or longer. The remaining 40% is “on hold” for a variety of reasons:

13% is held by students who are still in school

11% is in forbearance

11% is in deferment

5% is in a grace period

1% is classified as “other”

Forbearance and deferment enable many borrowers to postpone payments if they are experiencing economic hardship, like unemployment or a medical crisis; are serving in the military; or are continuing their studies through a fellowship, residency, or postgraduate study. The main difference is that interest always accrues during forbearance, but does not during some deferments.

The current breakdown is a significant change from the third quarter of 2013, when 42% of federal student loan debt was in repayment, 24% was held by students in school, 13% was in deferment, 8% was in forbearance, 7% was in a grace period, 5% was in default, and 1% was classified as “other.”

Why Is Student Loan Debt So High in the United States?

Student loan debt has ballooned in the past few decades, primarily because the costs associated with higher education – tuition, fees, housing, and books – have grown much faster than family incomes. The College Board has tracked costs at public and private universities since 1971.

When the organization first started monitoring prices, the average cost of one year at a public university was $1,410 ($8,730 in 2017 dollars). That was 15.6% of the median household income of $9,027 and manageable for many families without going into debt.

Fast forward to 2018, and the picture is very different. Today, the average cost of one year at a public university is $21,370, which is 34.8% of the median household income of $61,372. That could be why more than 70% of bachelor’s degree recipients emerge from college today with substantial student loan debt, and why many find themselves in need of loan consolidation and refinancing.

How Has The Pandemic Affected Student Loan Repayment Plans in 2022?

Starting with the Coronavirus Pandemic in early 2020, the federal government stepped in to make student loan repayment more manageable during this time of high unemployment rates and financial crisis. In order to save college graduates money, the federal government decided to put all federal student loans in forbearance temporarily.

This meant that there was a mass payment pause on all federal student loan payments. Initially, this was supposed to stop in January of 2022. However, the Biden administration extended the deadline to May 1, 2022 in order to give graduates extra time to restart their repayment plan. During this forbearance period, federal student loans would not accrue interest or require monthly payments from borrowers.

Frequently Asked Questions

What does delinquency mean for a student loan?

Delinquency is when your monthly loan balance goes unpaid for a certain period of time. After your loans are considered delinquent for 9 months, they go into default. If you have delinquent or default loans on your credit report, it can make it difficult for you to open new lines of credit in the future. This includes a mortgage, personal loan, credit card, and more.

Are there income-based repayment plans for low-income individuals?

Yes, the federal government offers income-based repayment plans for low-income individuals. These programs can help make your monthly payment much more manageable while still keeping your loans in good standing.

Do you have to pay back your student loans while still in school?

If you are enrolled in school more than half-time, you do not have to start paying back your federal student loans. However, some private lenders will require all students (even full-time ones) to start paying their loans back immediately after taking them out.

Learn More About Managing Your Student Loan Debt with Nitro College

Managing your student loan debt can be stressful, especially for recent graduates. However, there are plenty of resources out there to help make paying back your student loans much less stressful. Nitro College aims to provide resources for high school students, college students, and graduates for the best ways to pay back their student debt.

With Nitro College, you can get advice on every step of your college career: from applications to student loan repayment. Visit our blog to learn about more useful resources and advice to help you throughout your college career and beyond.

More student loan debt facts & statistics:

Note: The charts and statistics shown below are based on the most recently available data. As inflation has only increased, especially in the past 12 months, the consensus is these trends have only gotten worse.